Texas couples who are going through a divorce may be able to avoid financial errors if they are aware of some of the most common ones. For example, some people may be tempted to spend a lot of money just after the divorce, but they may regret this when the bills are due.
The simple mention of a prenuptial agreement to a soon-to-be-married individual or his or her family is likely to bring a charged reaction. For many in Texas, it seems inappropriate, at the very least, to initiate a discussion regarding the potential for the failure of a marriage before it has had the opportunity to begin. At worst, it signals the inevitable doom of the union. However, understanding exactly what a prenup is and isn't can provide some perspective.
The Tax Cuts and Jobs Act, or TCJA, may mean lower federal tax rates and a higher limit for the Alternative Minimum Tax for some individuals in Texas, but it could also make divorce more expensive for soon-to-be-exes. This is especially true if children are involved since the TCJA eliminates the value associated with personal and dependent exemptions. Alimony payments will also be considered a simple property transfer without tax consequences for either party.
An increasing number of older couples in Texas and across the country are choosing to divorce. While the divorce rate remains twice as high among younger couples, it has doubled since 1990 for people age 50 and older. At the same time, the rate has remained steady or even slightly declined for younger couples. People at any age can divorce successfully and move on to a happy single life, but it can be particularly important for people who divorce later in life to take care of their health.
There are a number of factors that could affect whether or not a Texas couple is likely to divorce, and one of the most significant could be when one partner feels a sense of hopelessness. When people in happy relationships come home after a hard day, they can take solace and support from their partners. One couples therapist said that she looks at the level of hopelessness in a relationship to determine whether a couple is more likely to split. When people are hopeless, they feel that nothing more can be done to keep the relationship together.
Going through a divorce can cast a long financial shadow, and a study released by the Center for Retirement Research reveals that the net worth of divorced households in Texas and around the country is about 30 percent lower than married households. The Boston College-based group also says that divorced spouses are 7 percent more likely to struggle financially during their retirement years. The study, which was published in June 2018, used figures from the Federal Reserve's latest Survey of Consumer Data.
When setting the terms of a divorce, it's important to consider how the current tax system will affect support payments and asset division. For instance, the new tax law passed by Congress in 2017 will have deep ramifications for divorcing couples in Texas one year from now. This is why plenty of couples contemplating divorce may want to get their separations finalized before 2019.
Gray divorces, or divorces on or after the age of 50, are on the rise in Texas and across the United States. Currently, around 25 percent of all divorces fall into this category.
It is no secret that divorce and contested child custody matters can be emotionally draining and contentious. Couples at odds with each other may see routine parts of the legal process in divorce as hostile acts. Being served with discovery is one of them. While being asked to answer questions may make you furious, it is important to understand what a party is entitled to know for the under the Texas Rules of Evidence.